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| The Phoenix Group | |
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Right To Buy FAQ
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Are you looking for a competitive council right to buy mortgage?
We aim to help you decide on the most appropriate mortgage solution available. You can then choose from some of the best interest rates on offer.
Bad credit? CCJs, defaults, mortgage or rent arrears - we have access to specialist lenders to help you!
Apply for a council right to buy mortgage now!!!
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What is Right to Buy?
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| The Right to Buy was introduced in 1980. It means you can buy your council home at a discount to the full market value. Your discount is based on the number of years you have spent as a public sector tenant. |
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What discount am I eligible for?
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| You must have been a public sector tenant for at least 2 years. If you live in a house, your discount will be between 32% and 60%. If you live in a flat, your discount will be between 44% and 70%. However, there is a ceiling on all discounts. This varies according to where you live. For example, if you live in the West Midlands, the maximum discount is £26,000. |
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Are there any other limits on discount?
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| Yes, two:
a special rule called the cost floor may apply. Your discount will be reduced to reflect what your landlord has spent on building, buying, repairing or improving your home during the last 10-11 years before you apply to buy; and
if you have previously bought another council property, any discount that you got then will usually be deducted from the discount that you get when you buy again |
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What is a leaseholder?
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| If you buy a house you will usually buy the freehold. This means you will be the outright owner. If you buy a flat, you will become a leaseholder. Normally, this means that you will be responsible for the interior of your home whilst your landlord will be responsible for looking after the structure and the exterior of the block. He will ask you to pay for major repair and improvement works, through service charges. |
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Who values my home if I want to buy it?
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| Landlords have to do this. If you think your landlord has valued your home too highly, you have a right to an independent valuation from the District Valuer. But you have to accept his valuation, even if it is higher than the landlord’s. |
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Can I resell my home after purchasing it under the Right to Buy?
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| You may sell your home whenever you like. But if you sell within three years of buying it, you will have to repay some or all of the discount that you received. If you sell:
during the first year, all of the discount will have to be repaid;
during the second year, two thirds must be repaid; or
during the third year, one third must be repaid. After three years, you can sell without repaying any discount. But if you live in the country, you may only be able to resell to the council. |
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What is Preserved Right to Buy?
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| If you are a secure tenant of a local authority, and your home is transferred to a Registered Social Landlord (for example, a housing association), you may still have the Right to Buy, although on slightly different terms. |
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Can I apply to buy if I have rent arrears?
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| Yes. But your landlord is not bound to complete the sale if you have not paid all the rent or any other payment within four weeks from the date you were asked to pay it. Also you may lose your secure tenancy and no longer have the right to buy if your landlord has obtained a suspended possession order against your property as a result of your rent arrears which you subsequently breach. |
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